Aequitas Management LLC and four affiliates allegedly defrauded more than 1,500 investors nationwide into believing they were making health care, education, and transportation-related investments when their money was really being used in a last-ditch effort to save the firm. Realized Launches Game Changing Platform for Direct Real Estate Investment, The CFP Board Calls Out Crypto in Code of Ethics and Standards, Modern Slavery Act Transparency Statement. | Recent Lawyer Listings Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. Attorneys for the District of Oregon. Greenspan uncovered a remarkable email exchange between Aequitas co-founder Brian Oliver and Andrew MacRitchie, the firm's one-time chief compliance officer, which seems to indicate they were. Please sign in or register to comment. There was the commercial lender. MacRitchie was ScottishPowers point man in its efforts to buy Pacificorp and served as an executive vice president there. Sam Kauffman is MacRitchies attorney. Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europe's Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX, Exec VP & Pres:Financial Svcs, Aequitas Capital Mgmt Inc. Aequitas Management, the Oregon-based RIA accused in 2016 of running a massive Ponzi-like scheme, and its top executives have finally settled with the Securities and Exchange Commission. A locked padlock Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. He declined to comment. The third policy is now being consumed even though the criminal case is just getting underway and the pool of potential defendants is expanding. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. PORTLAND, Ore.U.S. ) or https:// means youve safely connected to the .gov website. But I think my clients will be thrilled. The Government does not seek detention and Defendant is released on conditions. Secure .gov websites use HTTPS Prosecutors claim the Aequitas executives misled company investors about how their money was being used. Another was a utility executive who helped change Portlands business landscape. But they made good money for Aequitas and its investors. Sentencing materials are due no later than 7/31/2019. At a hearing in U.S. District Court on Monday, Janke confirmed that as part of his plea agreement, he would oppose any sentence of less than three years. Share sensitive information only on official, secure websites. As previously reported by RIA Intel, Aequitas claimed to manage $1.67 billion before it collapsed, which would likely make its downfall Oregons biggest-ever investment scandal. Plus, three other Aequitas defendants former second-in-command Brian Oliver and N. Scott Gillis and Olaf Janke, former Aequitas chief financial officers have pleaded guilty to fraud and. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. Court: United States District Court for the District of Oregon (Multnomah County), Plaintiff's Attorney: Scott E. Bradford and Ryan W. Bounds, Defendant's Attorney: Kendra M. Matthews and Whitney Patrick Boise, 18:1341 and 18:1343 CONSPIRACY TO COMMIT MAIL AND WIRE FRAUD On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. It was the beginning of the end for the high-flying company. All rights reserved (About Us). Signed on 4/19/2019 by Judge Michael W. Mosman. Official websites use .gov For 23 years, Brian Oliver was the classic second-in-command at Aequitas Management LLC, the earnest, low-key straight arrow to the company's colorful alpha-dog CEO Bob Jesenik. Subsequent reports detailed Aequitas default on its debt, the resulting panic among investors, the secret conflicts, and the firms strange cultural mashup -- part Wall Street investment bank, part frat party, part Bible class. | Advertising A lock ( Gillis was charged alongside former Aequitas CEO Robert J. Jesenik, 62, of West Linn, Oregon, and former Aequitas executives Brian K. Rice, 55, of Portland, and Andrew N. MacRitchie, 56, formerly of Palm Harbor, Florida. All material subject to strictly enforced copyright laws. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. This story was revised on Aug. 21, 2020 to correct some details about Brian Rices professional background. The company's general counsel just quit. Longtime Aequitas No. Bob Jesenik and Brian Oliver, the long-time chief executive and second-in-command at the Lake Oswego financial firm, said any misstatements they may have made to investors were simply. As part of their plea agreements, they have both agreed to pay restitution in full to their victims as determined and ordered by the court. But now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. A locked padlock Oliver also was charged criminally for his conduct and has pled guilty, but has not yet been sentenced. The default came to attention of the U.S. Securities and Exchange Commission, which sued Aequitas in March 2016 and got the company shut down. A Salem, Oregon man pleaded guilty today for using Twitter to threaten violence against employees of Robinhood Markets, Inc., an online financial services company based in Menlo Park, California. Both Rice and MacRitchie were high-profile Portland executives before joining Aequitas. Not guilty pleas and denial of forfeiture allegation entered. Learn more about reprints and licensing for this article. Community Rules apply to all content you upload or otherwise submit to this site. No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. MacRitchie, the former utility executive, was the picture of respectability. An official website of the United States government. Oliver was the primary fundraiser for ACF and the Aequitas Funds and a member of the management committees responsible for selecting or approving the investments made with investor . They both opted not to talk. In a divorce settlement filed with the court, it's. Counsel Present for the Government: Scott E. Bradford and Ryan W. Bounds. Oliver was the companys primary fundraiser and shared responsibility for the operation and management of Aequitas-affiliated companies and investment products as well as for the use of investor money. Gillis was the second Aequitas chief financial officer. The agency on Wednesday barred Aequitas partial owner and chief executive Robert Jesenik, 60, partial owner and executive vice president Brian Oliver, 55, and former chief financial officer N. Forgot your password? (Court Reporter Ryan White) (kms) (Entered: 04/19/2019) Secure .gov websites use HTTPS 2 executive Brian Oliver pleaded guilty to the same charges in April. Portland, Oregon 97204 | Link Errors Its not just the amount of insurance money that went to Jesenik that concerns the receiver. Youve missed the point, Anxiety over tax refunds on the rise, Bankrate.com study shows, Gensler steps up warnings to money managers. Until now, Rice and MacRitchie have faced minimal legal expenses. Waiver of indictment signed and accepted by the Court. Share sensitive information only on official, secure websites. All Rights Reserved. In addition, it said Gillis agreed to be permanently suspended from appearing and practicing before the SEC as an accountant and cannot work as an auditor for pubic companies. Official websites use .gov On August 11, 2020, the U.S. Attorneys Officeannounced that Gillis had been charged in a 34-count indictment with conspiracy to commit mail and wire fraud, wire fraud, bank fraud, and money laundering. YouTubes privacy policy is available here and YouTubes terms of service is available here. The firm purchased or invested in other financial firms, many of them glorified debt collectors. The Lake Oswego, Ore.-based investment management firm was the subject of a Securities and Exchange Commission complaint filed in 2016 alleging that Aequitas defrauded more than 1,500 investors into believing they were putting their money into health care, education and transportation investments when their money was being used primarily in a Ponzi-like fashion. Federal regulators claimed that Aequitas executives misled investors for years about the companys true financial condition. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. The firm was growing quickly, it did business with some of the best-known investment advisors in the country, it claimed to have more than $1 billion under management. A .gov website belongs to an official government organization in the United States. His attorneys have submitted bills for at least 2.7 million, far more than any other defendant. Subscribe for original insights, commentary and analysis of the issues facing the financial advice community, from the InvestmentNews team. They agreed to plead guilty and cooperate with the government. Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. 2020 update: Aequitas investors recoup some money. They've got that too. Mike Esler, another attorney for Aequitas investors, credited federal prosecutors for sticking with an extremely complex case all the way to the indictment of Aequitas leader Jesenik. ORDER granting the Government's oral motion to unseal the case. PORTLAND, Ore.U.S. Now both have been sucked into the criminal fraud investigation of the collapsed firm. | Store Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. Timothy Laniers firm in Neptune Beach, Florida, focuses on serving doctors and health care executives. The SEC alleges that CEO Robert J. Jesenik and executive vice president Brian A. Oliver were well aware of the firm's dire financial status but continued to solicit hundreds of millions of dollars in investments to stave off the firm's complete collapse. PORTLAND, Ore.U.S. ORDER Defendant released on previous conditions. He is scheduled to be sentenced on Aug. 5. He also established Aequitass New York Office and directed Aequitass Lux Fund, a Luxembourg-based fund used to solicit international investors. In reporting on the Aequitas claim, a local publication, The Oregonian, wrote: "Aequitas never gained the local reputation for integrity and savvy that its executives longed for. A lock ( ) or https:// means youve safely connected to the .gov website. He worked for Portland banks for much of his career before he was named regional president of Key Bank in 2006. The company had three policies each for $5 million of coverage. Brian and his wife of 30 years live in Aurora, Oregon where they raised their family. Arraignment held for Defendant Brian A. Oliver on Counts 1 and 2 of the Information. Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. Probation. Attorney Billy J. Williams announced today that Brian A. Oliver,a former owner and executive vicepresident of Aequitas Management, LLC and several other Aequitas . This is a company that talked a woman into investing nearly her entire retirement nest-egg -- about half-a-million dollars - in October 2015, Kayser said. Oliver was also charged criminally for his conduct. As part of the final consent judgment, the defendants are prohibited from soliciting anyone to purchase or sell a security and prohibiting them from participating in the issuance, offer, or sale of any security of an entity they control, the SECs release stated. Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. RIA Intel is part of Delinian. Lock The high-interest loans were terrible for students. The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. [More: Aequitas meltdown underscores the importance of due diligence, caution]. Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitass affiliated RIAs. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. Guilty pleas entered as to Counts 1 and 2 of the Information. The sentencing for former Aequitas Capital executive Brian Oliver has been moved again. If the sentencing materials are not received on time or the Court is not advised that none will be filed, the sentencing may be rescheduled. Rice acknowledged in court filings that he's a suspect in the case. 18:1957 CONSPIRACY TO COMMIT MONEY LAUNDERING A federal grand jury in the District of Oregon returned an indictment today charging four founders of Forsage, a purportedly decentralized finance (DeFi) cryptocurrency investment platform, for their roles in On February 6, 2023, a Russian cryptocurrency money launderer previously extradited from the Netherlands to face charges in the District of Oregon pleaded guilty in federal court. Previously, Brian was an Executive VP, Business Development at Alternative Asset Management. Aequitas did make legitimate investments. Both Rice and MacRitchie have asked the court for access to Aequitas insurance money to cover their defense costs. Counsel Present for Plaintiff: Scott Bradford, Ryan Bounds. There was the motorcycle leasing company. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Brian Rice and Andrew MacRitchie left their corporate posts for jobs at Aequitas Capital. Cookie Settings/Do Not Sell My Personal Information. 04/19/2019 11 Waiver of Indictment by Brian A. Oliver (schm) (Entered: 04/19/2019) Court finds guilty pleas to be knowing and voluntary. Some money from new investors was allegedly used to pay earlier investors In January 2014, shortly before joining Aequitas, he was named to the Portland board of directors of the Federal Reserve Bank of San Francisco. By the time he left, he was also in charge of Key Banks operations in Washington and Alaska. (See separate order.) If you purchase a product or register for an account through one of the links on our site, we may receive compensation. It is believed that since he was ousted from Aequitas, Jesenik has been. If you missed the last issue of InvestmentNews, you can access it here. Brian Oliver, Aequitas Capital's longtime No. brian oliver, aequitas brian oliver, aequitas Home Realizacje i porady Bez kategorii brian oliver, aequitas 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. If you need help with finances, they've got that covered. Other funds went to pay their salaries. John Deere boasted record profits in 2021 and finally struck a deal with striking union workers. Official websites use .gov Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business. According to court documents, Jesenik, Gillis, MacRitchie, Rice, and others used the Lake Oswego company to solicit investments in a variety of notes and funds, many of which were purportedly backed by trade receivables in education, health care, transportation, and other consumer credit areas. Brian A. Oliver, age 51, resides in Aurora, Oregon. As U.S. Judge Magistrate Paul Papak noted in an October 2017 ruling, at that point 61 percent of the defense cost payments went to Jeseniks lawyers. SEC charges advisor over Aequitas conflicts of interest. It was actually a giant Ponzi scheme, they said, in which the company relied on money from new investors to repay the old. Have a question about Government Services? Luminaries from the downtown business establishment wanted to join the team. 2023 Advance Local Media LLC. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Rice served as Aequitass executive vice president and president of wealth management. 1000 SW Third Ave Suite 600 Its been a long time coming, Kayser said. There was no more hiding the fact that Aequitas was broke. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. If convicted on all charges, each of the defendants could face decades in prison and millions of dollars in fines and restitution, as well as five years supervised release following their prison terms. Brian A Oliver is Exec VP & Pres:Financial Svcs at Aequitas Capital Mgmt Inc. See Brian A Oliver's compensation, career history, education, & memberships. Gillis was the second Aequitas chief financial officer. The company opened slick new offices in New York City. II. Aequitas also had tentacles spread throughout the RIA world. U.S. Attorney's Office, District of Oregon, Criminal conspiracy could have cost investors more than $600 million, Former Aequitas Owner and Executive Vice President Pleads Guilty in Fraud and Money Laundering Conspiracy, Salem Man Pleads Guilty for Using Twitter to Threaten Violence Against Robinhood Employees, FBI and Partners Issue National Public Safety Alert on Financial Sextortion Schemes, Armed Robbery Crew Posing as DEA Agents Charged in Federal Court, Former Aequitas Owner and Executive Vice President Pleads Guilty In Fraud and Money Laundering Conspiracy. 13. A locked padlock The Aequitas entities, Jesenik, and Gillis consented to the entry of final judgment without admitting or denying the SECs allegations. SEC v. Aequitas Management, LLC; Aequitas Holdings, LLC; Aequitas Commercial Finance, LLC; Aequitas Capital Management, Inc.; Aequitas Investment Management, LLC; Robert J. Jesenik; Brian A. Oliver; and N. Scott Gillis Case Number: 16-cv-00438 (United States District Court for the District of Oregon) Date Filed: March 10, 2016 Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. 2023 Advance Local Media LLC. Attorney Billy J. Williams announced today that Brian A. Oliver, a former owner and executive vice president of Aequitas Management, LLC and several other Aequitas-related companies has pleaded guilty to conspiring to commit mail and wire fraud and money laundering. 1000 SW Third Ave Suite 600 Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. It is believed that since he was ousted from Aequitas, Jesenik has been working for a company founded by his son: KCR Advisors LLC, based in Viero Beach, Fla. An earlier indictment against Gillis will be dismissed. PORTLAND, Ore.U.S. PORTLAND, Ore.U.S. Brian's experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. By that time, it was clear to Aequitas executives the company was in deep financial trouble., Kayser added. Sentencing is set for 8/5/2019 at 9:00AM in Portland before Judge Michael W. Mosman. Cookie Settings/Do Not Sell My Personal Information. They are also prohibited from violating the SECs antifraud provisions. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. I have really enjoyed working with Seth, Brian and the Cathedral team.. The SECs complaint, filed on March 10, 2016, alleged that Aequitas Management and four affiliates defrauded more than 1,500 investors nationwide when that money was being used primarily to cover operating losses and to pay earlier investors in a Ponzi-like fashion, according to an April 24 SEC press release on the final judgment. Oliver was a partial owner and Executive Vice President of Aequitas Management, LLC ("Aequitas Management . The court appointed receiver now in charge of whats left of Aequitas opposes Rices and MacRitchies request for access to the insurance money. Portland, Oregon 97204 Portland, Oregon 97204 The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. Much of the cash went to make the payments owed to other investors. He argues he needs the money to help defray losses suffered by Aequitas investors. But prosecutors allege the Aequitas executives lied about the firms financial performance. Nevertheless, Papak ruled in favor of Jeseniks request for access to additional insurance funds to cover his defense. They've got that too. Main Office: In the shadow of a turbulent future, The Bloomberg New Economy Forum brought together world leaders for face-to-face discussions on the global threats we face. It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. View limitations & usage restriction, Breaking news, analysis and cutting edge commentary from our award-winning team and leading industry voices, The latest news and other relevant content from selected Citywire partners. | Privacy Statement. In these roles, he was responsible for directing Aequitass overall financial policies and accounting functions. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement, Privacy Policy and Cookie Statement, and Your Privacy Choices and Rights (each updated 1/26/2023). According to a Complaint filed on March 10, 2016 in Oregon federal district court, the SEC has brought claims against Aequitas Management, LLC (CRD# 143780/SEC# 801-68039) and three Aequitas executives, Robert J. Jesenik, Brian A. Oliver, and N. Scott Gillis for defrauding investors and for a breach of fiduciary duties. Lock Gillis was the second Aequitas chief financial officer. Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. MacRitchie was the companys executive vice president and chief compliance officer. Brian received a Bachelor of Science degree from Oregon State University. All rights reserved (About Us). Accounting giant Deloitte, stock trader T.D. The agency on Wednesday barred Aequitas partial owner and chief executive Robert Jesenik, 60, partial owner and executive vice president Brian Oliver, 55, and former chief financial officer N. Scott Gillis, 66, from the securities industry for their roles in a scheme that bilked hundreds of millions from investors. Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. The company's general counsel just quit. A .gov website belongs to an official government organization in the United States. Community Rules apply to all content you upload or otherwise submit to this site. Oliver is the 25% owner of Aequitas Management and an Executive Vice President of the Entity Defendants. District of Oregon Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. Brian provides Cathedral particular expertise in leading Merger & Acquisition transactions and arranging Corporate Finance solutions for its clients, after having been involved in extensive transactions of all sizes throughout his career. From June 2014 through February 2016, the former executives solicited investors by misrepresenting the companys use of investor money, the financial health and strength of Aequitas and its related companies, and the risks associated with its investments and investment strategies. The fallout continues in the Aequitas Management scandal, which has produced guilty pleas, jail sentences, big-dollar fines and, now, additional bans from the industry by the Securities and Exchange Commission (SEC). Brian Oliver President, Cathedral Finance | Senior Advisor Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. Our team of expertsis available to help your business build value in a variety of ways including: assessments, strategic planning, corporate financing, M&A support, market research, growth marketingandmuch more! By early January 2016, Aequitass general counsel advised Gillis and other executives that the company would soon default on payments due to Private Note investors, causing an event of default on Aequitass loan agreement with Wells Fargo. Defendant proceeds as named. In anticipation of the institution of these proceedings, Respondent has submitted an Offer . Defendant advised of rights. There are also questions about whether Jesenik and other defendants spent the money appropriately. Then Corinthian went bankrupt. 1000 SW Third Ave Suite 600 Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. He was the British honorary consul to Portland. They are Brian Rice, who formerly headed Key Banks operations in much of Oregon, Andrew MacRitchie, The Scotland native who came to Portland when when Scottish Power purchased PacifiCorp, and N. Scott Gillis, the former chief financial officer. This case is being investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. In what could be the largest settlement of a securities lawsuit in Oregon history, settlements of at least $234.6 million have been secured for some 1,600 investors in a class action against third. Attorney Billy J. Williams announced today that Olaf Janke, a former owner and chief financial officer of Aequitas Management, LLC and several other Aequitas-owned entities, has pleaded guilty to conspiring to commit mail and wire fraud and money laundering. Ledger left the company in 2005 in a highly controversial and public way. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. Rice, former president of Key Bank of Oregon, acknowledged in recent court filings that he is a target in the case. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement, Privacy Policy and Cookie Statement, and Your Privacy Choices and Rights (each updated 1/26/2023). Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies.
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